Gold Price Blog

End of Day Update

$1,108.91 +1.44

4:11pm EST

Gold Price: $1,108.91, +$1.44, +0.13%

Silver Price: $17.15, +$0.16, 0.94%

US Dollar Index: 80.280, -0.167, -0.21%

Oil Price: $81.23, +$0.14, +0.17%

Copper Price: $3.39, +$0.03, +0.76%

10-Year Yield: 3.72%, +0.00, +0.00%

King report on gold

$1,108.72 +1.26

1:31am EST

Doug Kass, on thestreet.com, highlighted comments from Bill King’s King Report on why gold has been weak recently:

1. U.K. quantitative easing has ended (for now).

2. U.S. quantitative easing will end in three weeks (for now).

3. The ECB did a massive drain.

4. China is signaling that it wants to rein in inflation by tightening credit, hiking real estate down payments to 50% and allowing the yuan to appreciate.

5. Europe’s sovereign debt crisis has ebbed (for now).

6. Food commodities have broken down.

7. Gold stocks have greatly underperformed gold since mid-January (gold stocks tend to lead).

Gold price recovers losses

$1,107.77 +0.31

10:49am EST

The gold price recovered its earlier losses and briefly turned positive, rising $0.31 to $1,107.77 per ounce as the U.S. Dollar Index (DXY) gave up its gains to trade lower by 0.2% at 80.61 this morning.

South African Gold Output Falls 18%

$1,101.78 -5.69

9:52am EST

South African mine output rose in January for the first time in six months, led by accelerating iron ore and platinum group metal output. However, gold production continued to decline in spite of record gold prices. Gold output fell 18% in January, according to South Africa’s statistics office.

China and Deficit Data Pressure Gold

$1,101.91 -5.55

9:04am EST

Gold futures are lower again today and have declined every day this week thus far. After opening the week at $1,135.20, the COMEX April gold contract, at $1,101.90 per ounce, has declined $33.30 or 2.9%. January trade deficit figures, which came in slightly better than expectations at -$37.3 billion, and hotter inflation data from China overnight are pressuring the gold price and the rest of the commodity complex.

End of Day Update

$1,107.46 -12.82

4:18pm EST

Gold Price: $1,107.46, -$12.82, -1.14%

Silver Price: $16.99, -$0.25, -1.5%

US Dollar Index: 80.460, -0.137, -0.17%

Oil Price: $81.87, +$0.38, +0.47%

Copper Price: $3.38, -$0.03, -0.84%

10-Year Yield: 3.72%, +0.02, +0.51%

February Deficit Highest Ever

$1,111.12 -9.16

2:27pm EST

The federal budget deficit in February set a record for the highest monthly shortfall ever, totaling $220.9 billion according to an announcement by the U.S. Treasury Department. Economists’ estimates had pegged the deficit at $222 billion. The current fiscal year deficit now amounts to $651.6 billion, a 10.5 % increase over the first five months of the previous fiscal year.

Gold recovers part of earlier $17 decline

$1,111.23 -9.05

2:23pm EST

Gold has recovered a portion of the earlier fall that saw the price of gold drop to as low as $1,103 per ounce. The yellow metal is currently lower by $9.05 to $1,111.23 as the DXY has resumed its decline this afternoon.

Gold price plunges to $1,106

$1106.25 -14.03

12:41pm EST

The gold price continued to fall in mid-day trading, with the price of gold falling $14.03 to $1,106.25 per ounce. Weakness in gold came alongside a selloff in the equity markets as the U.S. dollar recovered most of its earlier decline against the euro.

Gold turns lower as dollar recovers

$1114.24 -6.04

11:39am EST

The gold price turned lower in late morning trading, falling $6 to $1,114 as the U.S. Dollar Index (DXY) recovered approximately half of its earlier 0.4% decline.

February Deficit Numbers Pending

$1123.84 +3.55

11:15am EST

The U.S. Treasury Department is scheduled to release budget numbers for February at 2:00pm EST and economists are expecting the deficit for the month to reach a record $222 billion. If realized, the deficit for the current fiscal year, which began in October 2009, will hit $653 billion - a 10.7% increase over the first five months of the 2009 budget year. Last week, the Congressional Budget Office released its own 10-year deficit forecast which topped White House projections by $1.2 trillion.

Investors Intelligence Survey

$1126.22 +5.94

10:54am EST

The weekly Investors Intelligence sentiment survey saw an increase in the percentage of both bulls and bears - from 42.1% last week to 44.9% bulls and from 22.7% last week to 23.6% bears. Advisors classified under correction declined from 35.2% to 31.6%.

Canadian Dollar > parity with U.S. Dollar?

$1,120.64 +0.36

10:15am EST

CIBC World Markets forecasted that the Canadian dollar will rise above parity with the U.S. dollar by September 2010. The forecast is based on the expectation that Canada’s central bank will move to raise its policy rate by July, at least six months before the Federal Reserve raises rates. Analysts forecasted that the Canadian currency will rise to a rate of C$0.98 to US$1.00 before falling back to C$1.027 per US$1.00 at year-end as the countries’ key interest rates converge. The Canadian dollar was at 1.026 to the U.S. dollar in mid-morning trading.

Gold resilient in face of dollar optimism

$1,123.74 +3.46

9:26am EST

The gold price traded higher this morning in spite of continued strength in the U.S. dollar, as investor optimism toward the greenback rose to its highest level since September 2008.

End of Day Update

$1,120.28 -1.84

4:09pm EST

Gold Price: $1,120.28, -$1.84, -0.16%

Silver Price: $17.24, +$0.01, +0.16%

US Dollar Index: 80.580, +0.145, +0.18%

Oil Price: $81.36, -$0.51, -0.62%

Copper Price: $3.39, -$0.02, -0.69%

10-Year Yield: 3.70%, -0.01, +0.19%

Gold turns positive

$1,124.14 +2.01

12:03pm EST

Gold turned positive in early afternoon trading as the gold price climbed $2 to $1,124 per ounce after having traded as low as $1,112 this morning.

Gold price recovers $1,120 level

$1,120.56, -1.57

11:41am EST

In spite of the numerous headwinds facing the gold price, the yellow metal displayed its resiliency by recovering the $1,120 level in mid-day trading.

Gold drops on dollar rally, china news

$1,116.67 -5.45

11:24am EST

The gold price faced further headwinds this morning as the euro fell 0.3% to 1.3580 against the dollar. In addition, the price of gold was pressured by comments from China’s foreign-exchange regulator, who stated that gold is “unlikely” to be the nation’s principal asset class in which to diversify its $2.4 trillion holdings of reserves.

China Official: Limits to Gold Reserves

$1,117.10 -5.02

10:06am EST

China’s head foreign exchange minister stated there are limits to the country’s “ability to increase foreign exchange investment in gold,” and commented that gold price volatility detracts from its attractiveness as a long-term investment. Yi Gang noted that foreign reserve purchases of the metal by China would increase the price of gold and frustrate Chinese consumers of gold who “will face higher prices and they won’t like it.” Mr. Yi also said that China’s continued investment in U.S. Treasuries is beneficial for both China and the U.S.

Gold continues to weaken

$1,112.82 -9.30

8:54am EST

The gold price continued to weaken this morning, falling $9 to $1,113 per ounce as yesterday’s Federal Reserve announcement on liquidity-draining measures pressured the price of gold. With today’s decline, the gold price turned negative for March by $4 per ounce.

End of Day Update

$1,122.12 -9.85

4:26pm EST

Gold Price: $1,122.12, -$9.85, -0.87%

Silver Price: $17.23, -$0.11, -0.63%

US Dollar Index: 80.440, -0.009, -0.11%

Oil Price: $81.77, +$0.27, +0.33%

Copper Price: $3.41, -$0.01, -0.16%

10-Year Yield: 3.71%, +0.03, +0.71%

COMEX gold closes down 1.0%

$1,124.08 -7.89

2:04pm EST

COMEX gold futures - April contract - closed lower by $11.20, or 1.0%, at $1,124 per ounce.

Gold extends decline to $1,122

$1,122.11 -9.86

11:58am EST

The price of gold extended its decline, dropping $10 to $1,122 per ounce as morning trading progressed. In spite of today’s selloff, the gold price remained higher by $5 for the month of March, and $27 year-to-date.

Gold price turns lower

$1,125.19 -6.78

10:19am EST

After initially rising $2 the gold price turned lower, falling $7 to $1,125 per ounce as the U.S. Dollar Index (DXY) recovered a portion of its earlier losses but remained lower by 0.2% at 80.305.

Gold set for early gains

$1134.37, +2.40

9:16am EST

The gold price looked to build on last week’s gain as it traded marginally higher this morning on the back of a 0.2% rise in the euro currency against the U.S. dollar to 1.3651.

U.S. Dollar to “Plunge” - Paolo Pellegrini

$1,134.76 +2.29

2:24pm EST

In a recent investor letter Paolo Pellegrini disclosed some of his favorite trades in 2010, including shorting the U.S. dollar and going long commodities. The founder of hedge fund PSQR LLC - who previously at Paulson & Co. helped John Paulson make over $3 billion shorting securities linked to the housing market - noted that “the structural problems that precipitated the Great Recession around the globe remain unresolved.” Mr. Pellegrini explained that he is shorting the dollar because of his expectation that policymakers will soon introduce additional stimulus measures, which could cause the dollar to “plunge.”

Sprott Gold Trust Raises $400 Million

$1,134.80 +2.83

2:01pm EST

Sprott Asset Management, the investment firm run by noted gold bull Eric Sprott, raised $400 million last week through an initial public offering of its physical gold trust. The Sprott Physical Gold Trust (PHYS) began trading on the Toronto Stock Exchange and the NYSE Arca and offers investors “a "convenient way to own physical gold bullion” and an “ability to redeem units for physical gold bullion,” according to the prospectus.

Highest Weekly close since mid-january

$1131.97, +15.01

12:33pm EST

The gold price finished the week with a $15 gain to $1,132 per ounce - its highest weekly close since mid-January. Strength in the price of gold was accompanied by a rally in many dollar-denominated commodities, including silver, copper, and oil.

End of Day Update

$1,131.97 -0.18

4:14pm EST

Gold Price: $1,131.97, -$0.18, -0.02%

Silver Price: $17.34, +$0.23, +1.34%

US Dollar Index: 80.450, -0.114, -0.14%

Oil Price: $81.75, +$1.54, +1.92%

Copper Price: $3.42, +$0.05, +1.41%

10-Year Yield: 3.68%, +0.07, +2.11%

COMEX gold closes higher

$1,134.49 +2.34

1:48pm EST

Gold futures (April contract) on the COMEX - where trading closes at 1:30pm EST - finished up $2.10 to $1,135.20 per ounce.

Gold eyes over 1.5% weekly gain

$1136.41 +4.26

1:17pm EST

At $1,136 per ounce in afternoon trading, the gold price is eyeing a weekly gain of over 1.5%. Over the same time frame the euro currency - which has displayed a strong correlation with the price of gold over the past several years - is currently at 1.3612 against the U.S. dollar and is nearly unchanged on the week. Meanwhile, the gold price has advanced 2.7% versus the British pound this week.

Gold approaches $1,140

$1138.60 +6.45

11:01am EST

Gold resumed its rally this morning and approached the $1,140 per ounce level while the U.S. Dollar Index gave up its earlier gains and traded near unchanged at 80.53.

Gold price recovers $1,130

$1132.20 +0.05

8:50am EST

The gold price subsequently recovered the $1,130 level after market participants had more time to digest the jobs data. The February nonfarm payrolls report showed a loss of 36,000 jobs, better than the 68,000 loss consensus estimate. The unemployment rate also came in better than expected, at 9.7% versus a 9.8% estimate. January nonfarm payrolls were revised lower, however, to a loss of 26,000 jobs from a 20,000 loss originally.

Gold lower after jobs data

$1129.37 -2.78

8:36am EST

Gold at first showed a muted response to the February employment report, but then fell below $1,130 per ounce after the jobs data was released.

End of Day Update

$1,132.15 -7.49

4:11pm EST

Gold Price: $1,132.15, -$7.49, -0.66%

Silver Price: $17.11, -$0.07, -0.41%

US Dollar Index: 80.530, +0.544, +0.68%

Oil Price: $80.48, -$0.39, -0.48%

Copper Price: $3.38, -$0.06, -1.76%

10-Year Yield: 3.61%, -0.02, -0.52%

Dollar Rallies to intraday high

$1130.08 -9.56

12:11pm EST

The U.S. Dollar Index has rallied to an intraday high of 80.66 in mid-day trading, while the price of gold has stabilized somewhat near $1,130 per ounce.

Gold Price below $1,130

$1128.00 -11.65

10:44am EST

The gold price dropped over $11 to $1,128 this morning - its largest decline in seven days - as the U.S. Dollar Index reclaimed the 80 level amid weakness in the euro.

Buy gold every month forever?

$1129.54 -10.10

10:39am EST

In an interview on CNBC noted investor Marc Faber stated that all people should accumulate gold over time, and that “People should buy gold every month forever.”

Gold falls as euro weakens vs. dollar

$1138.98 -0.67

8:43am EST

The gold price traded slightly lower this morning as the euro fell 0.2% to 1.3664 against the dollar. Weakness in the euro was tied to rising Greek bond yields as the government began issuing new debt to fund its mounting budget deficits, which includes 20 bilion euros of securities that mature in April and May.

End of Day Update

$1,139.65 +6.21

4:23pm EST

Gold Price: $1,139.65, +$6.21, +0.55%

Silver Price: $17.18, +$0.29, +1.72%

US Dollar Index: 79.970, -0.522, -0.65%

Oil Price: $80.89, +$1.21, +1.52%

Copper Price: $3.43, +$0.02, +0.54%

10-Year Yield: 3.62%, +0.01, +0.30%

Dollar Index Falls Below 80

$1140.82 +7.39

2:11pm EST

The U.S. Dollar Index (DXY) - of which the euro makes up 57.6% - fell below 80 for the first time in two weeks after the release of the Fed’s Beige Book, which reported that the U.S. economy has continued to grow at a modest pace, but saw no improvement in credit conditions.

Gold Price Holds Gains

$1142.79 +9.35

12:18pm EST

The gold price is trading near its session highs along with a stronger euro, as details of Greece’s austerity plan emerge. Greece has proposed a combination of tax increases and civil service pay cuts totaling 4.8 billion euros in an attempt to gain European Union backing to facilitate the refinancing of 50 billion euros worth of debt which comes due this year. The broader market was also boosted by the ADP unemployment report which came in at 20,000 jobs lost in February, a significant improvement from January’s 60,000 jobs lost.

Investors Intelligence Survey

$1139.80 +6.36

8:51am EST

The weekly Investors Intelligence sentiment survey saw an increase in the percentage of bulls to 42.1% from 41.1% last week, and a decline in the percentage of bears to 22.7% from 23.3% in the prior week. Advisors classified under correction fell to 35.2% from 35.6% last week.

Gold above $1,140, euro up on greece plan

$1140.91 +7.47

8:32am EST

The gold price rose above $1,140 this morning as the U.S. dollar weakened against the euro after Greece announced a 4.8 billion euro ($6.5 billion) austerity plan to contend with its mounting budget deficits. The plan includes reducing salaries of civil servants, increasing the sales tax to 21% from 19%, and raising taxes on cigarettes and alcohol, as well as other items.

End of Day Update

$1,133.43 +16.18

4:18pm EST

Gold Price: $1,133.43, +$16.18, +1.45%

Silver Price: $16.92, +$0.45, +2.74%

US Dollar Index: 80.510, -0.147, -0.182%

Oil Price: $79.69, +$0.99, +1.26%

Copper Price: $3.41, +$0.06, +1.64%

10-Year Yield: 3.61%, +0.01, +0.22%

Gold Hits $1,130

$1,130.59 +13.34

11:07am EST

The gold price extended its gains, rising $13.34 to $1,130.59 per ounce in spite of the U.S. Dollar turning fractionally positive against the euro.

Hulbert Index a concern for Gold Bulls

$1,121.23 +3.98

10:14am EST

Bullish sentiment towards gold, as evidenced by the Hulbert Gold Newsletter Sentiment Index, has risen to 46.6% this week from 32.3% at the beginning of February, although the gold price remains near $1,120 per ounce - approximately the same level as a month ago. Index creator Mark Hulbert called this a “disturbing pattern of creeping optimism” and evidence that the gold price is headed lower over the “short-term horizon” - which he defines as the next couple of months.

Gold Price Rises with Euro

$1,125.57 +8.32

8:43am EST

The gold price climbed $8.32 to $1,125.57 per ounce this morning - its highest level since January 19 - while the euro currency gained 0.22% to 1.3585 against the U.S. dollar.

End of Day Update

$1,117.25 +0.29

4:11pm EST

Gold Price: $1,117.25, +$0.29, +0.01%

Silver Price: $16.43, -$0.06, -0.36%

US Dollar Index: 80.73, +0.371, +0.46%

Oil Price: $78.79, -$0.87, -1.09%

Copper Price: $3.35, +$0.06, +1.86%

10-Year Yield: 3.61%, +0.01, +0.31%

Gold-Backed Credit Card?

$1,117.15 +0.19

4:07pm EST

Gold Solutions Marketing Inc. (http://www.TheGoldBullionCard.com/) announced that it is planning to introduce the first credit card backed by gold bullion coins. Jeff Silver, VP of the company, stated that “A credit card based on 75 percent of the value of gold coins on deposit will be backed by solid and tangible collateral, which should give the issuing bank a much more secure feeling about extending credit.”

Gold Price Nearly Unchanged

$1,115.92 -1.04

1:07pm EST

The gold price traded higher for most of the morning but has since turned fractionally negative as the euro has remained weaker by 0.6% against the dollar, at 1.354

Buffet on the Dollar and Euro

$1,120.07 +3.11

11:43am EST

Earlier this morning on CNBC Warren Buffet discussed his outlook for various currencies and stated that “Both the dollar and euro are likely to lose purchasing power over time” - a positive development for the gold price.

Dollar Strength Resumes

$1,114.57 -2.39

10:20am EST

The U.S. dollar is strong versus the euro and the pound, keeping a lid on the gold price. The pound traded below $1.50 for the first time since May of 2009 as concerns over Britain’s growing deficit mount. The euro is under pressure despite rumors that a Greek rescue package is forthcoming. Over the weekend, legendary investor George Soros questioned the survival of the euro in an interview with CNN’s Fareed Zacharia.

Gold Price Slightly Lower

$1,115.26 -1.70

8:47am EST

The gold price fell $1.70 to $1,115.26 this morning as the U.S. Dollar Index (DXY) advanced 0.8% to 81.06 - near the highest level for the DXY in over 9 months.

End of Day Update

$1,116.10 +11.10

4:06pm EST

Gold Price: $1,116.96, +$11.13, +1.01%

Silver Price: $16.45, +$0.33, +2.00%

US Dollar Index: 80.38, -0.36, -0.44%

Oil Price: $79.73, +$1.56, -2.00%

Copper Price: $3.28, +$0.07, +2.31%

10-Year Yield: 3.60%, -0.03, -0.82%

Read Marc Faber's Comments on Gold

COMEX gold higher

$1,116.65

2:48pm EST

COMEX gold futures (April contract) closed up $10.40 to $1,118.90 per ounce.

Gold Price Extends Gains

$1,115.53

2:22pm EST

The gold price was up $9.70 to $1,115.53 in afternoon trading, extending its earlier gains and participating in a broader market rally as the U.S. dollar slipped, with the U.S. Dollar Index (DXY) down $0.36 to $80.38.

China Rumor Unfounded

$1,113.19

12:03pm EST

Nadezhda Shagrova, the author of yesterday’s report that China was planning to purchase the remaining IMF gold for sale, told Reuters that she did not have any official sources for her story. When told that the gold price rallied on her report, she exclaimed “No, no there’s just no way that could be because of my article.”

Read GoldAlert's Full Report on China Gold Rumor

Gold Maintains Gains

$1,113.27

10:19am EST

Gold maintained its early gains, trading higher by $7.44 to $1,113.27 per ounce after a slew of economic reports - including Chicago PMI, University of Michigan Consumer Sentiment, and Existing Homes Sales - were released.

Gold Higher, $ lower after GDP

$1,111.15

9:26am EST

The gold price rose to $1,111 as the U.S. dollar rally stalled after fourth quarter GDP came in at 5.9% - above expectations of 5.7%.

Gold Firm

$1,110.35

8:51am EST

The price of gold traded up heading into the open, rising $4.53 to $1,110.35. While rumors that the Chinese are poised to purchase a block of the 191 metric tons of gold for sale by the International Monetary Fund (IMF) remain unsubstantiated, gold has held most of yesterday’s nearly 1% rise.

End of Day Update

$1,105.83

4:14pm EST

Gold Price: $1,105.83, +$9.68, +0.88%

Silver Price: $16.09, +$0.13, +0.80%

US Dollar Index: 80.70, -0.15, -0.18%

Oil Price: $78.26, -$1.74, -2.18%

Copper Price: $3.23, -$0.03, -0.83%

10-Year Yield: 3.64%, -0.05, -1.43%

Gold over $1,100

$1,106.45

1:37pm EST

Gold extended its gains in afternoon trading, rising $1.030 to $1,106.45 on the report of China purchasing gold from the IMF.

China Buying IMF Gold?

$1,098.30

11:46am EST

The gold price approached the $1,100 per ounce level on a report from an English language Russian news website citing Russia’s Interfax, that China has “confirmed its intention to purchase 191.3 metric tons of gold from the International Monetary Fund (IMF) at an open auction.”

Gold Turns Positive

$1,097.25

10:01am EST

The price of gold turned positive, up $1.10 to $1,097.25 per ounce

Gold Price Holds $1,090

$1,093.21

9:53am EST

The gold price has held up considerably well this morning, down just $2.94, or 0.3%, to $1,093.21 as the U.S. Dollar Index (DXY) advanced 0.2% despite the relatively larger selloff in equity markets and commodities such as oil and copper.

Gold Falls, Dollar Rallies

$1,091.74

9:27am EST

The gold price moved lower this morning, down $4.41 to $1,091.74 per ounce as the dollar rallied 0.6% against the euro on further sovereign debt conerns in Europe - the latest of which was a statement by S&P that Greece could face a ratings downgrade by one or two notches in the next month.

Read GoldAlert's Full Report on Gold Price Correction